Daan luxury housing prices stay sky-high

TAIPEI, Taiwan -- Despite the government's measures to control the housing market, apartments in Daan District in downtown Taipei have been traded at more than NT$1 million per ping, based on the government's database that tracks local real estate transactions.

Properties located on Renai Rd. Sec. 3 and Sec. 4 in Taipei ranked the top in terms of unit price. Transaction prices averaged NT$1.11 million per ping (about 3.3 square meters) during the first half of 2014.

Properties located on Dunhua S. Rd. Sec. 1 and Sec. 2 claimed the second place in terms of unit price. Transaction prices averaged NT$1.046 million per ping. Apartments located on Daan Road Sec. 1 and Sec. 2 claimed third place, with a unit price averaging at NT$1.042 million. The fourth and fifth places are claimed by Linyi St. and Anhe Rd., respectively, with unit prices averaging NT$1.005 million and NT$996,000 per ping.

Except for Anhe Rd., all the "top five strips" are located in Daan District., which is considered by many as Taipei's "best district." Despite the government's measures to suppress Taipei's surging housing prices, a strong demand for properties situated on "essence strips" still exists, said Yung-ching Realty (永慶房屋) research manager Andy Huang (黃舒衛).

In fact, some buyers specifically request apartments located in the above-mentioned strips, according to Huang. The database shows that at least 20 properties located on each of the top five strips changed hands during the first half of 2014.

Government Measures Take a Toll on Upscale Housing Market: Realtor

With celebrities living nearby and Renai Rd.'s rare boulevard, properties located on Renai Rd. Sec. 3 and Sec. 4 have almost become the synonym of Taipei's luxury apartments, said Huang. In fact, there are already many upscale apartments including The Palace (帝寶) and Renai SOLO that are located in the area.

According to the database, housing transaction prices averaged NT$907,000 in Daan District. Nevertheless, average transaction prices of the top five strips still exceeded Daan District's by 10 percent. Average transaction prices of the top two strips, Renai Rd. Sec. 3 and Sec. 4 and Dunhua S. Rd. Sec. 1 and Sec. 2, exceeded the average in Daan District by 22 percent and 15 percent, respectively.

Based on the latest update of the government-maintained database, a unit in the upscale Renai SOLO was sold for NT$248.35 million in June. Its unit price of NT$1.4 million per ping was actually lower that the market price of NT$1.8 million.

Huang said that the government's measures to suppress housing prices have taken a toll on the upscale housing market. Most purchases were made for tax-saving and self-use purposes, instead of speculative investment, he said.